[LINK] WSJ/ AFP / SMH: 'Google in antitrust crosshairs'
Roger Clarke
Roger.Clarke at xamax.com.au
Fri Jun 24 12:53:07 AEST 2011
Being evil? Google in antitrust crosshairs
June 24, 2011 - 10:20AM
AFP, reprint in SMH
http://www.smh.com.au/business/world-business/being-evil-google-in-antitrust-crosshairs-20110624-1gi9g.html
The US Federal Trade Commission (FTC) is poised to open a formal
antitrust probe into whether internet search giant Google has abused
its dominance on the web, The Wall Street Journal reports.
The newspaper, citing ''people familiar with the matter,'' said the
FTC is preparing to serve Google with civil subpoenas ''signalling
the start of a wide-ranging, formal antitrust investigation''.
The Journal said the five-member commission will send Google the
formal demands for information ''within days'' and other companies
were likely to receive requests for information about their dealings
with Google.
The FTC declined to comment on the report and there was no immediate
response to a request for comment from Google.
Google, which controls around 65 per cent of the lucrative US
internet search market, has been the target of numerous antitrust
investigations by the FTC and the US Department of Justice in recent
years.
But the Journal said the FTC's probe ''is the most serious to date''
in the United States because it will examine ''fundamental issues
relating to Google's core search advertising business''.
Google makes most of its money from search-related advertising. The
Journal said the probe will look at whether Google ''unfairly
channels users to its own growing network of services at the expense
of rivals''.
European Union competition watchdogs opened an investigation into
similar allegations in November.
Google has faced increasing scrutiny from US and European regulators
as it has grown over the years from a scrappy startup into an
internet powerhouse.
In April, the US Justice Department approved Google's entry into the
online travel sector with its $US700 million ($665 million) purchase
of flight data firm ITA Software but it insisted on a number of
concessions from Google.
Several online travel sites, including Expedia, Kayak and
Travelocity, had sought to block the Google-ITA deal, claiming it
would give Google too much control over the lucrative online travel
market and lead to higher prices.
In late March, the FTC reached a settlement with Google over Google
Buzz, the social networking tool rolled out last year which spawned a
slew of privacy complaints. Under the settlement announced by the US
regulator, Google is required to implement a comprehensive privacy
program and will be subject to independent privacy audits every two
years for the next 20 years.
Also in March, a US judge dealt a setback to Google's plans for a
vast digital library and online bookstore, rejecting a copyright
settlement hammered out by the internet giant with authors and
publishers.
In 2008, Google abandoned a plan to forge a joint search advertising
partnership with Yahoo!, citing a desire to avert a ''protracted
legal battle'' with US regulators.
AFP
--
Roger Clarke http://www.rogerclarke.com/
Xamax Consultancy Pty Ltd 78 Sidaway St, Chapman ACT 2611 AUSTRALIA
Tel: +61 2 6288 1472, and 6288 6916
mailto:Roger.Clarke at xamax.com.au http://www.xamax.com.au/
Visiting Professor in the Cyberspace Law & Policy Centre Uni of NSW
Visiting Professor in Computer Science Australian National University
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